THE UK Independence Party predicted yesterday it would outgrow the Lib Dems by next year’s general election.

Membership has now passed 36,000 – only around 8,000 behind Nick Clegg’s party.

As it prepares today to launch the campaign to win next month’s European Parliament elections, Nigel Farage’s anti-Brussels party also revealed £1.5million of funding from former Tory backer Paul Sykes.

The Yorkshire businessman’s cash will pay for a hard-hitting advertising campaign, including billboards that provoked accusations of racism when they were unveiled yesterday.

Following their bruising encounters during the two live debates, Mr Farage will taunt europhile Mr Clegg yet more as he launches the campaign in Sheffield where the Deputy PM is MP.

Are we going to ruffle a few feathers among the chattering classes? Yes. Are we bothered? Not in the slightest

Ukip leader Nigel Farage

The Ukip leader is expected to highlight a poster showing a Union Flag with its centre burned out to reveal the EU flag behind, the claim that 75 per cent of UK laws are made in Brussels and the question: “Who Really Runs This Country?”

It urges voters to “take back control of our country”.

The donation from Mr Sykes, who is said to have a £650million fortune, will un-nerve all three main parties.

He said: “May 22 is a referendum on British membership of the EU with a vote for Ukip being a vote for Out.”

One ad shows a builder begging with the caption “EU policy at work. British workers are hit hard by unlimited cheap labour” while another sends the message that 26 million unemployed people in Europe are “after” British people’s jobs.

Labour MP Mike Gapes denounced the Ukip posters as “racist”.

But Mr Farage said: “Are we going to ruffle a few feathers among the chattering classes? Yes. Are we bothered? Not in the slightest.”